Quotemedia Reports 3% Revenue Growth to $4.82 Million, Faces Increased Net Loss in Q1 2025

Quotemedia, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 3% to $4.82 million compared to $4.68 million in the same period of 2024. The company experienced a net loss of $499,811, or $(0.01) per share, a significant decline from the previous year's loss of $28,176. The increase in revenue was attributed to growth in its Corporate Quotestream product line, which saw an 11% rise in revenue, driven by an increase in both customer count and average revenue per customer. However, the overall gross profit decreased to $2.11 million, resulting in a gross margin of 44%, down from 50% in the prior year.

In terms of operational changes, Quotemedia's total current assets decreased to $1.58 million from $1.94 million at the end of 2024, primarily due to a reduction in cash and cash equivalents, which fell to $173,191. The company's total liabilities increased to $5.60 million, with accounts payable and accrued liabilities rising significantly. The company also reported a working capital deficit of $4.02 million, although it noted that a substantial portion of its current liabilities consisted of deferred revenue, which is expected to be realized with minimal costs.

Quotemedia's strategic focus remains on expanding its product offerings and enhancing its infrastructure. The company is actively developing new features and data for its existing products, particularly through its QMod platform, which aims to provide customizable and mobile-ready content solutions. The company plans to leverage artificial intelligence to improve its product development processes. Additionally, Quotemedia is looking to grow its Data Feed Services client base and expand its international data coverage.

Despite the positive revenue growth, Quotemedia faces challenges, including increased costs associated with revenue, which rose by 16% due to higher stock exchange fees and amortization expenses. The company also noted that its software development expenses increased by 27%, reflecting a shift in how development costs are capitalized. Looking ahead, Quotemedia anticipates continued revenue growth for the remainder of 2025, supported by contracts already in place, but acknowledges the potential need for additional financing to support its operational plans. The company remains cautious about market conditions, including inflation and geopolitical factors, which could impact its business.